Update: Federal Rate Cap Legislation

November 8, 2019

NPA’s Government Relations Committee just received information that the federal rate cap legislation we were originally advised would be in next week’s mark-up of bills coming before the House Financial Services Committee has been removed from the list along with a few others. However, it is expected to be included in the next mark-up, so this delay will be brief.

NPA’s Government Relations Committee was aware, and news outlets are now reporting, that Senators Sherrod Brown, Jack Reed and Jeff Merkley are working on a Senate version of federal rate cap legislation. Senator Brown is Ranking Member and Senator Reed is next in seniority on the Banking, Housing and Urban Affairs Committee, and Senator Merkley has often advocated for federal rate cap legislation.

No one needs to think that this is all a bunch of smoke with no fire, and that federal rate cap legislation is not going to happen. Because of the NPA Government Relations Committee’s work over the years in Washington, we were alerted early of what was being worked on ‘behind the scenes’ and took immediate steps to reach out to Hill offices with our concerns. This quick action, along with the work of other potentially affected industries, went a long way toward delaying introduction of the bill. But, with the 2020 elections only a year away, those running for office or re-election are looking to pad their resumes and will not abandon their efforts.

So, we can take a breath, but not much more than that. We must use this small window of opportunity wisely and re-enforce our relationships with our Members of Congress and initiate new ones. We will need these contacts soon, so please continue to communicate this information to NPA Government Relations Liaison, Fran Bishop fbishopdp1@gmail.com.

If you are not a current member of the National Pawnbrokers Association, please consider joining us. We need every pawnbroker to help us fight this legislation that is detrimental to all of us.